Discounted Cash Flow (DCF) Analysis Levered

Western Digital Corporation (WDC)

$60.83

+1.73 (+2.93%)

All numbers are in Millions, Currency in USD

Stock DCF: 50.71 | 60.83 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	19,093	20,647	16,569	16,736	16,922	16,520.41	16,128.36	15,745.60	15,371.93	15,007.13
Revenue (%)
Operating Cash Flow	3,437	4,205	1,547	824	1,898	2,109.46	2,059.39	2,010.52	1,962.81	1,916.23
Operating Cash Flow (%)
Capital Expenditure	-578	-835	-876	-647	-1,146	-759.83	-741.79	-724.19	-707	-690.23
Capital Expenditure (%)
Free Cash Flow	2,859	3,370	671	177	752	1,349.63	1,317.60	1,286.33	1,255.80	1,226

Weighted Average Cost Of Capital

Share price	$ 60.83
Beta	1.419
Diluted Shares Outstanding	309
Cost of Debt
Tax Rate	11.43
After-tax Cost of Debt	3.31%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.457
Total Debt	8,725
Total Equity	18,796.47
Total Capital	27,521.47
Debt Weighting	31.70
Equity Weighting	68.30
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	19,093	20,647	16,569	16,736	16,922	16,520.41	16,128.36	15,745.60	15,371.93	15,007.13
Operating Cash Flow	3,437	4,205	1,547	824	1,898	2,109.46	2,059.39	2,010.52	1,962.81	1,916.23
Capital Expenditure	-578	-835	-876	-647	-1,146	-759.83	-741.79	-724.19	-707	-690.23
Free Cash Flow	2,859	3,370	671	177	752	1,349.63	1,317.60	1,286.33	1,255.80	1,226
WACC
PV LFCF						1,255.35	1,139.95	1,035.16	940	853.59
SUM PV LFCF										5,224.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.51
Free cash flow (t + 1)	1,250.52
Terminal Value	22,695.50
Present Value of Terminal Value	15,801.40

Intrinsic Value

Enterprise Value	21,025.44
Net Debt	5,355
Equity Value	15,670.44
Shares Outstanding	309
Equity Value Per Share	50.71